1
PSERS’ Investment PortfolioAsset Allocation as of March 31, 2019 (Unaudited)
Asset ClassMarket Value
(in millions)% of Total
TargetAllocations
PolicyRanges
Publicly-Traded Global Equity $8,799.2 15.8%Private Markets $8,162.0 14.6%
Total Equities $16,961.2 30.4% 30.00% +/- 10.0%
Investment Grade $5,912.8 10.6%Credit-Related $5,372.7 9.6%Inflation Protected $8,005.9 14.4%
Total Fixed Income $19,291.4 34.6% 36.00% +/- 10.0%
Master Limited Partnership (MLP) $2,262.7 4.1%Infrastructure $1,647.7 3.0%Commodities $4,204.7 7.5%Real Estate $5,407.6 9.7%
Total Real Assets $13,522.6 24.2% 24.00% +/- 10.0%
Risk Parity $4,507.4 8.1% 8.00% +/- 5.0%
Absolute Return $6,024.7 10.8% 10.00% +/- 5.0%
Cash and Cash Equivalents* $2,724.6 4.9% 6.00% +/- 3.0%
GROSS INVESTMENT PORTFOLIO $63,031.9 113.0% 114.00%
Financing ($7,244.8) (13.0%) (14.0%) +/- 9.0%
NET INVESTMENT PORTFOLIO $55,787.1 100.0% 100.00%
Net Other Assets and Liabilities $1,406.9
PSERS TOTAL NET ASSETS $57,194.0
* - includes Cash, Cash Equivalents, and net asset value accounting adjustments
2
PSERS’ Investment PortfolioAsset Allocation as of March 31, 2019 (Unaudited)
Publicly Traded Equities, 15.8%
Private Markets, 14.6%
Investment Grade, 10.6%
Credit-Related, 9.6%
Inflation Protected, 14.4%MLP, 4.1%
Infrastructure, 3.0%Commodities, 7.5%
Real Estate, 9.7%Risk Parity, 8.1%
Absolute Return, 10.8%Cash and Cash Equivalents, 4.9%
Financing, -13.0%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
Total Real Assets24.2%
Total Fixed Income34.6%
Total Equities30.4%
3
PSERS’ Investment PortfolioAsset Allocation as of March 31, 2019 (Unaudited)
*Financing represents a negative 13.0% allocation and is not reflected in the pie chart.
Publicly Traded Equities, 15.8%
Private Markets, 14.6%
Investment Grade, 10.6%
Credit-Related, 9.6%
Inflation Protected, 14.4%
MLP, 4.1%
Infrastructure, 3.0%
Commodities, 7.5%
Real Estate, 9.7%
Risk Parity, 8.1%
Absolute Return, 10.8%Cash and Cash Equivalents, 4.9%
4
PSERS’ Historical Asset Allocation
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
U.S. Equity Non-U.S. Equity Fixed IncomeReal Estate Private Markets Absolute ReturnMLP Infrastructure Risk ParityCommodities Cash & Cash Equivalents Financing
5
PSERS’ Historical Net Investment Portfolio
0.8 2.14.9
17.3
28.8
33.7
39.3
44.848.9
53.4
48.1
43.5 42.3
48.351.8
57.0
67.2
62.7
43.145.7
51.448.5 49.2
52.7 51.949.2
52.455.6 55.4
53.455.8
$0
$10
$20
$30
$40
$50
$60
$70
$80
Month/Year
Bill
ions
6
PSERS’ Gross Investment PortfolioInternally Managed Assets
$0
$10
$20
$30
$40
$50
$60
$70
$80
Gross Investment Portfolio Internally Managed Assets
Bill
ions
7
PSERS’ Internally Managed Assets
$0
$5
$10
$15
$20
$25
$30
06/2007 06/2008 06/2009 06/2010 06/2011 06/2012 06/2013 06/2014 06/2015 06/2016 06/2017 06/2018 09/2018 12/2018 03/2019
Bill
ions
U.S. Equity Fixed Income Cash & Cash Equivalents Non-U.S. Equity Commodities Real Estate Risk Parity Private Markets MLP Infrastructure
8
PSERS’ Summary Statements of Changes in Plan Net AssetsFor the Fiscal Years Ended June 30
Additions: 2013( $ in millions)
2014( $ in millions)
2015( $ in millions)
2016( $ in millions)
2017( $ in millions)
2018( $ in millions)
• Member Contributions 991 967 985 989 1,014 1,026
• Employer Contributions 1,446 1,992 2,597 3,190 3,833 4,250
• Net Investment Income 4,126 7,098 1,328 473 4,995 4,714
Total Additions 6,563 10,057 4,910 4,652 9,842 9,990
Deductions:
• Pension Benefits 6,044 6,053 6,221 6,360 6,474 6,655
• Administrative Expenses 37 39 42 45 45 47
Total Deductions 6,081 6,092 6,263 6,405 6,519 6,702
Net Increase/(Decrease) in Plan Net Assets 482 3,965 (1,353) (1,753) 3,323 3,288
9
PSERS Annual Cash Flows History – Since 1982
(14%)
(12%)
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
($10)
($8)
($6)
($4)
($2)
$0
$2
$4
$6
$8
$10
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018Bill
ions
Member Contributions ($) Employer Contributions ($)Benefit Payments ($) Net Cash Flow Shortfall ($)Cash Flow Excess/Shortfall as % of Beginning NAV (%)
10
PSERS Annual Cash Flows History – Since 2001
(14%)
(12%)
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
($10)
($8)
($6)
($4)
($2)
$0
$2
$4
$6
$8
$10
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018Bill
ions
Member Contributions ($) Employer Contributions ($)Benefit Payments ($) Net Cash Flow Shortfall ($)Cash Flow Excess/Shortfall as % of Beginning NAV (%)